PAXG, issued by Paxos Trust Company, N.A., is a digital token representing allocated physical gold, where each token corresponds to one fine troy ounce of London Good Delivery gold held in segregated custody for the benefit of tokenholders [S1][S2].

Each PAXG token represents beneficial ownership of a pro rata portion of allocated Gold, specifically London Good Delivery bars, and tracks the real-time market value of physical gold; tokenholders bear all of the risk and reward of gold ownership and accrue no yield [S1][S2]. A storage fee is passed to all tokenholders pro rata via token dilution, subject to change on 30-day notice, alongside a 2.00 USD monthly inactive-account fee applied after 12 months without activity [S2].

Paxos Trust Company, N.A. is a United States trust company and custodian regulated by the Office of the Comptroller of the Currency (OCC), with PAXG issued pursuant to specific OCC approval and Paxos's prudential regulator being the New York State Department of Financial Services (NYDFS) [S1][S3][S4]. Tokenholders hold a warehouse-receipt-style claim to allocated gold held on a segregated basis in an LBMA-approved vault [S2]. Only verified customers may purchase PAXG, the product is currently unavailable in the EU, and holders can redeem for LBMA-accredited Good Delivery bullion at a minimum of 430 PAXG per bar, for unallocated Loco London Gold, or for U.S. dollars (USD) at current gold prices [S1][S2].

PAXG is an ERC-20 token on the Ethereum blockchain, supporting onchain transfers and wallet-based bar lookups [S1][S2]. U.S. dollars used to purchase PAXG are promptly converted into an equivalent amount of London Good Delivery gold to maintain the 1:1 ratio before tokens transfer to the customer's wallet; price quotes remain valid for five seconds, and reserves are attested monthly [S3][S2][S5].

<Sources
  retrievedAt="2026-06-19"
  items={[
    { id: "S1", url: "https://www.paxos.com/pax-gold" },
    { id: "S2", url: "https://www.paxos.com/terms-and-conditions/pax-gold-terms-conditions" },
    { id: "S3", url: "https://www.paxos.com/blog/how-gold-becomes-tokenized-paxg" },
    { id: "S4", url: "https://www.paxos.com/usdp-transparency" },
    { id: "S5", url: "https://www.paxos.com/paxg-transparency" },
  ]}
/>


# PAXG Asset redemptions methodology

## 1. Overview

PAXG Asset redemptions is measured as the total value of PAXG tokens that are burned and removed from on-chain circulation. User demand to exit PAXG positions and reclaim the underlying off-chain collateral is reflected by this metric. Redemptions are identified through specific supply reduction events emitted by the PAXG token contracts. The total value is aggregated daily and converted to USD using end-of-day price feeds.

## 2. Data sources

- **EVM chain events**: `SupplyDecreased` events from PAXG contracts on Ethereum
- **External data**: End-of-day price feeds

## 3. Step-by-step calculation

### Component A: Redemption event extraction

- **Purpose**: To identify all instances where PAXG tokens are burned by the issuer.
- **Logic**: On Ethereum, `SupplyDecreased` events are parsed from PAXG contracts. These events specifically represent the reduction of the total token supply as assets are redeemed for their off-chain backing. Events that have been invalidated by chain reorganizations are excluded from the dataset.
- **Key fields**: `value` (the amount of tokens burned), `timestamp` (the time the event was recorded on-chain)

### Component B: Final aggregation

- **Purpose**: To aggregate daily redemption volumes and convert them to USD.
- **Logic**: Data is aggregated by day and by token address. Amounts are normalized by decimal precision. USD conversion is applied using the formula: `amount_usd = amount × price_usd`, where the price is sourced from end-of-day price feeds. Final values are summed to provide the total daily PAXG Asset redemptions.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of assets redeemed or burned for underlying collateral.

Asset redemptions

Tokenized commodities

Users deposit funds into Paxos account and receive BUSD or USDP at a 1:1 rate.

Paxos is a financial technology company that is the principal architect of BUSD & USDP - full-reserve fiat stablecoins that bring US dollar liquidity on-chain.

Paxos is a private company registered in the US. Paxos' investors include OakHC/FT, Declaration Partners, Mithril Capital and PayPal Ventures etc.

github

twitter

etherscan

website

Stablecoin issuers

Paxos

PAX Gold (PAXG) is a gold-backed token issued by Paxos through Paxos Trust Company, N.A.

Each token represents one troy ounce of gold and is a direct claim on the issuer.

The metal is held in vaults in the United Kingdom operated by Paxos Trust Company, N.A. on a segregated basis, is attested by KPMG, and carries no storage fee for holders.

Retail investors and institutions can mint and redeem directly with Paxos after completing KYC, and holders have a contractual right to redeem for physical delivery of the metal or its cash value, with two-to-five-business-day settlement.

Paxos Trust Company, N.A. is incorporated in the United States, is chartered as a U.S. national trust bank, and is supervised by the Office of the Comptroller of the Currency (OCC).

Holder terms are governed by the law of New York in the United States.

PAXG has been issued on Ethereum as an ERC-20 token since August 2019.

PAX GoldPAXG